Estimated bills, overcharging and undercharging
Your energy company or distributor will arrange for a person to come to your place to read the meters. Usually this will happen around the time you are due to receive a bill. Sometimes though, your meter is unable to be read. This might happen if:
- the meter was broken
- it was not safe or easy to get to your meter.
In this case the energy company has to make an estimate. This means they will guess how much energy you used.
To make an estimate, the energy company uses a previous bill to inform their estimate.
The energy company can also make an estimate by looking at the energy used by a similar customer.
If your energy company used an estimate, your bill should say ’based on an estimation’ (note: as part of the Better Bills Guideline, your energy company must clearly state that the relevant amount is ‘based on an estimation’ and not use an abbreviation, like the letter ‘E’).
Can I give my energy company my read of the meter?
You can request an adjusted bill based on your own reading of your meter. This is called a ‘customer read estimate’. You can provide this to your energy company before the due date for the bill that contains their estimate.
Your energy company must tell you how to access guidance and requirements for you to read the meter yourself and provide your own estimate. For more information, please see the Better Bills Guideline.
What if my bill is less than it should be?
Sometimes the amount of energy you use is more than what your energy company estimated. This means your bill or bills have been less than they should. When this happens, we say that the energy company undercharged you.
If your bills have been less than they should have been, your next bill will probably be larger to include the amount that you owe the energy company.
What happens if it was the energy company's fault that I was undercharged?
Sometimes, it is the energy company's fault that your bills have been too low. For example, they might have had problems with their billing system.
If it's their fault, you only have to repay what you owe for the last 9 months.
Example
You got your new bill. The energy company told you it has undercharged you $10 every month for 15 months. The total amount you were undercharged was $150.
You only have to pay back what you owe for the last 9 months. This means you only have to pay $90.
What happens if it was my fault that I was undercharged?
Sometimes, it is your fault that your bills have been too low.
For example, the energy company had to estimate the bills because staff could not safely get to your meter.
You have to pay the full amount that has been undercharged.
Example
You got your new bill. The energy company told you that it has undercharged you $10 every month for 15 months because it had to estimate how much energy you used. The total amount you were undercharged was $150.
You have to pay back the whole amount you owe, so $150. This is because it was your fault they had to estimate how much you used.
How long do I have to repay the money?
You do not have to repay the money you owe all at once.
How long you have depends on how long your bills have been wrong.
- If you were undercharged for more than 12 months, you have 12 months to pay the amount you owe. For example, if you were undercharged for 15 months, you have 12 months to pay the amount you owe.
- If you were undercharged for less than 12 months, you need to first work out the number of months that the bills have been too low. You have the same number of months to pay the amount you owe. For example, if you were undercharged for 4 months, you have 4 months to pay the amount you owe.
What if my bill is more than it should be?
Sometimes your bill or bills can be more than they should be. This happens when you use less energy than what the energy company estimated. When this happens, we say that the energy company overcharged you.
- If the energy company overcharged you less than $50, they must take that amount off your next bill.
- If the energy company overcharged you more than $50, you can ask them to either take the amount off the next bill or give you back your money.
Complaints
You can contact your local energy ombudsman if you don't agree with the bill, and can't solve it with your energy company.
Their contact details are on our Useful contacts page.
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Last updated on Wednesday, June 19, 2024 at 4:12 PM